BSE Sensex inches up by 3.33 pts to close at 29,007.99; NSE Nifty edges higher by 5.15 pts to end at 8,767.25.
BSE Sensex rose a second consecutive session day on Wednesday, ahead of the Rail Budget, as blue-chips recovered from recent falls after Federal Reserve Chair Janet Yellen suggested the US central bank would not rush into raising interest rates.
The Fed is preparing to consider interest rate hikes “on a meeting-by-meeting basis,” Yellen told a U.S. congressional committee on Tuesday, a subtle shift of emphasis that helps lay the groundwork for the first U.S. rate hike since 2006.
Sentiment also got bolstered after overseas investors bought Indian shares worth 6.97 billion rupees ($112.3 million) on Tuesday, buying shares worth $884.34 million for the fourth straight session.
Still, broader gains were tempered by caution ahead of an event-heavy week.
Among events this week include the expiration of February derivatives contracts on Thursday, and most importantly, the government’s fiscal budget for the new fiscal year starting in April due on Saturday.
“People are waiting for the big event. Expectations are high and I think the budget will be the trend setter. But we advise our clients to be cautious,” said Suresh Parmar, head, institutional equities at KJMC Capital Markets.
The benchmark BSE index gained 0.72 percent to 29,214.53, while the broader NSE index added 0.6 percent to 8,815.30.
Heavyweights were the gainers. Housing Development Finance Corp Ltd, which had lost 3.2 percent in the last three sessions, gained 2.35 percent, while Reliance Industries , which slumped 6.8 percent in the last three sessions, added 1.3 percent.
DLF Ltd, which had lost about 3 percent since Friday after the NSE said the stock would be removed from the Nifty index, added 1.5 percent.
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
Despite positive global cues, India couldn’t sustain the sentiment as concerns over union budget outcome still persists. The question whether all expectations will be answered in the budget or will it unwrap as a continuous process, remains to be seen. Volatility might remain, given the key trigger is post expiry and tomorrows railway budget can possibly provide some direction. That said, broader markets would see more volatility relative to the nifty index.
Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
The markets opened with a positive but profit booking ahead of the February month F&O expiry made the markets to pare most of its gains. Due to the expiry and railway budget tomorrow we can expect highly volatile movements.
Nifty today closed at 87627 up around 5 points. The market breadth stood negative as there were seen 1229 stocks advancing against 1659 stocks declining. The Nifty volatility index, India VIX stood at 20.7750 down around 3.59%.
The Mid-cap and small-cap sectors were seen underperforming the broader markets, ended down around 0.22% and 0.40% respectively.
The major losers in the sectorial front were Healthcare and Banking which ended down around 1.03% and 0.76% respectively whereas muted buying were seen in the IT and FMCG sector which ended up around 0.45% and 0.36% respectively.
In the stocks’ front, selling was seen in Sun Pharma and Dr Reddy, closed down around 2.30% each and on the other end the gainers were ACC and HDFC which closed up around 2.84% and 2.40% respectively.
The FIIs were net buyers in the capital market segment, bought shares worth Rs 697.28 crore on Tuesday, 24 February 2015. On the other hand the DIIs were net sellers on 24 February 2014, sold shares worth Rs 146.98 crore as per the provisional data from the stock exchanges.
The European markets were little changed and the US index futures were trading mixed. Now the investors were focusing more data from US front.
Volatile movements can be expected tomorrow as of the F&O expiry of the February month.